Special Economic Zones in Latvia: Rezekne SEZ case
There are three Special Economic Zones (SEZ) and two Freeport’s operating in Latvia: Rezekne SEZ, Liepaja SEZ, Latgale SEZ, Riga Freeport and Ventspils Freeport. SEZ and Freeport’s encourage investment in production and various service areas. Many entrepreneurs choose these territories because of being in such geographical location allows to access Latvian ports, airports, railroads and any place by road. Mechanical engineering, chemical factories, woodworking, electronics and IT, these are some of the industries that chose Latvian Freeport’s and SEZ territories as home for their investments and businesses.
In particular, Rezekne Special Economic Zone (Rezekne SEZ) was established in 1997 based on Rezekne SEZ Law and has been operating successfully for almost 24 years now. It is crucial to know that the current Rezekne SEZ tax relief will apply until December 31 of 2035, providing plenty of time for existing and potential co-operators.
Advantages of Special Economic Zones
Entrepreneurship in SEZ territories is much more beneficial, if we compare with other territories of Latvia. If you invest in SEZ territories, you can receive following tax reliefs:
• up to 100% tax relief for property tax;
• 80 % corporate income tax discount;
• up to 55% tax deduction from investment costs.
Among many advantages of why to choose cooperation with Rezekne SEZ, we would like to highlight the most important ones:
Rezekne SEZ is located in the significant crossroads of transport corridors in Latvia with direct access to international markets in European Union, Russia, and CIS countries.
It is worth mentioning that Latvian geographic location is suitable for successful entrepreneurs aiming for European Union and Eastern countries due to being located on the shore of the Baltic Sea, availability of ports, developed road and rail infrastructure, and having the biggest airport in the Baltic States.
For enterprises performing or planning commercial activity within the territory of Rezekne SEZ, the administration offers efficient, client, and results-oriented consultation services. Support is provided based on every client's needs and objectives.
Skilled labor force
You can count on a responsible and professional labor force with long-standing industrial traditions and access to high-quality education in this region.
In the nearest area of Rezekne, the population is 120 thousand and approximately 2'300 job-seekers in economically active age.
Making an impact in the region: The case of “LATSTAB” RSEZ SIA
Speaking of the efficiency of becoming part of the Rezekne SEZ, we would like to introduce a company operating successfully in Rezekne SEZ for a few years now in the metalworking field: "LATSTAB".
"LATSTAB" has been operating in the Rezekne SEZ since 2016 and started their way with support from the development financial institution ALTUM. They are working on a comprehensive range of steel products manufacturing for different civil engineering needs, such as construction, road construction, telecommunications, railroad, meteorology, and others.
Chairman of the board of "LATSTAB" Stanislavs Ratinskis has said that the main goal was not to create a business that would bring in a considerable income. The reason was to create something that will impact the region and create something unique and needed by growing one step at a time.
The company continues to grow steadily, increasing:
By attracting 120'000 Euro funding, they purchased an inductive heating unit, which helped them start manufacturing a new product of their own - a curved pole. As a result of the investment, the increase in productivity has reached 20% in companies' exports.
As mentioned above, cooperating within Rezekne SEZ provides a massive bonus of highly skilled local workers, and "LATSTAB" is not an exception. By offering a competitive salary, the company is successfully using a local labor force.
The company is already exporting to 15 countries - Lithuania, Estonia, Sweden, Denmark, Russia, Belarus, Ukraine, United Kingdom, Ireland, Germany, Netherlands, Belgium, Armenia, Norway, and the Czech Republic.All that is possible because of geographical location, as roads, railroads, airports, and ports are within reach for successful export conditions.
Growth rates in 2020
Besides all of the benefits mentioned above, here are some numbers about other Rezekne SEZ commercial company growths.
Survey, where 15 Rezekne SEZ commercial companies participated, has shown a positive growth and development trend in 2020:
♦ 47% of commercial companies have increased turnover:
↑ 16% RSEZ "MAGISTR- FISKEVEGN GROUP.MFG" SIA
↑ 30 % "MB Properties" RSEZ SIA
↑ 38% SIA "Midis" RSEZ
♦ 73% of commercial companies have kept or increased their jobs.The largest increase in the number of jobs was registered here:
↑ RSEZ "MAGISTR FISKEVEGN GROUP.MFG" SIA
↑ SIA "Midis" RSEZ
↑ "Energy Resources CHP" RSEZ SIA